Seasonal forwards considered temporarily the most appropriate indexes for baseload reference price in the UK FIT CfD
- Category: Capacity Markets
The reference price for baseload generation under the UK FIT CfD contracts scheme (implementation thereof is intended in summer 2014 already) will initially be calculated from the two reference prices each year; one set every six months, however, the concrete set of indices and their weightings are yet to be confirmed, thus financial assessments are still not viable.
Moreover, the longer term intention is to move in that regard to year-ahead forward prices and the unknown mechanics of this transition adds to the investors' risks.
ACER narrows premises for disclosing REMIT inside information on market participant's own websites
- Category: REMIT
Market participants may disclose REMIT inside information on their own website either as a fall-back option or simultaneously to a disclosure of inside information through an inside information platform, however, the updated regulatory guidelines appear to treat the publication of inside information on the market participant's own website as an interim measure, allowed only under multiple conditions and unless otherwise specified.
ENTSO-E proposes the key rules for harmonised imbalance calculation and pricing
- Category: Network Codes
In order to give adequate incentives for Balance Responsible Parties (BRPs), the draft Code Balancing Code asserts that BRP aggravating imbalances shall not be priced less (for shortage) respectively more (for surplus) than the weighted average price for Frequency Restoration Reserve (FRR) and Replacement Reserve (RR) in the relevant area, in order to reflect the local imbalance situation.
ESMA's trouble with ETDs' reporting
- Category: EMIR
Deadlines for EMIR reporting for exchange-traded derivatives (ETDs) will likely be extended by 1 January 2015.
Clearing thresholds under EMIR - certain trades counted threefold
- Category: EMIR
Generally, a group of companies is often perceived by legislators and judicature as a single economic unit. The case is also present under EMIR rules, where for instance, to establish whether a subsidiary has crossed a clearing threshold, transactions of the entire group must be counted.
On the other hand, when a group - as a single economic unit - buys emission permits in the carbon market, the value of transaction is - for EMIR clearing threshold calculations - 300% of the trade.
It is evident that the monitoring of the EMIR requirements by non-financials mustn't consist in the verification of the clearing threshold levels only, but needs to be supported by sophisticated procedures and IT tools.
Bidding zones review - new regulatory risk?
- Category: Network Codes
Do the review of existing bidding zones increase the electricity generators' costs and risks?
Emissions OTC derivative contracts between EU branches of non-equivalent third countries subjected to EMIR
- Category: Emissions trading
As opposite to OTC derivative contracts between EU branches of non-equivalent third countries (which are proposed by ESMA to be subjected to EMIR) OTC derivative contracts between the EU branch of a non-EU entity and another non-EU entity is not captured. Such an approach seems to be lacking in systemic cohesion.
 Scope of application of EMIR to third country entities - draft RTS | [ ] | 40 kB |
EUAM - a new type of emission allowances?
- Category: Emissions trading
It is probable new emission allowances appear in the medium perspective on the European carbon market. The arguments that supported the creation of distinct carbon units for aviation sector (EUAA) are present also for the maritime sector.
Carbon leakage list: additions possible, no removals
- Category: Implementation
EU ETS carbon leakage list applies for the years 2013-2014. It is interesting that while additions are possible before 2014 (and are in fact occuring in yearly intervals), sectors included cannot be removed from the list before that date.
Such carbon leakage list unidirectional design is in the climate policies turmoil among the last safeguards that give certainty to the European industry.
Capacity market's MiFID/EMIR treatment
- Category: Capacity Markets
Limited powers for intervention on the carbon market granted to the European Commission on 3 July 2013
- Category: Legal Alert
The European Parliament's files documenting backloading vote in the plenary on the 3 July 2013 show the European legislative body decided to rein in the executive's ambitions to influence carbon market in the administrative way.
UK capacity market in the light of EC State aid requirements
- Category: Capacity Markets
The intended UK capacity market, the major milestones thereof have been recently revealed, appears to reflect the key points of the European Commission' recent consultation on State aid criteria to be applied to capacity mechanisms.